Domestic manufacturing just got easier

Recently, U.S. manufacturers and those who may be looking to expand their businesses domestically received some good news. A number of factors that affect the industry just shifted in a positive direction.

According to a column in The Desert Sun, analyst data shows that after decades of losing ground in manufacturing, the U.S. is now an increasingly attractive place to be.

Despite a reputation for being expensive, productivity and cost-effectiveness is now up. In fact, the news source noted that the U.S. now ranks 8th overall in these categories when compared to the world's top 25 industrialized countries.

The news source goes on to explain some of the reasons why this is the case. One of the most recent causes is the expansion of domestic oil and natural gas production—the result of advanced exploration and recovery techniques. This has lowered energy prices in the U.S. and saved manufacturers a significant amount of money. It also helps that domestic manufacturers are located closer to their customer base in the U.S., and can cut down on their transportation costs as a result.

A growing insistence on quality control has also tipped the balance in favor of the U.S. Though countries like China, Taiwan, India and Bangladesh offer lower costs, they also have a reputation for poorly-constructed goods—lessening the advantage they have over domestic manufacturing.

Of course, not every part of the U.S. is created equal. As surveys show, Texas is routinely considered to be one of the best states in which to start and grow a business. Affordable land, low taxes and a business-friendly regulatory structure serve to create a strong environment for CNC machining companies.